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Business Segment Information
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Business Segment Information

Note 13.

Business Segment Information

Information concerning unaudited consolidated operations by business segment is presented in the following table (in millions):

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical Devices

$

165.1

 

 

$

150.5

 

 

$

482.4

 

 

$

445.3

 

Corporate and Other

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Net Sales

 

165.1

 

 

 

150.5

 

 

 

482.4

 

 

 

445.3

 

Operating Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical Devices

 

29.3

 

 

 

37.6

 

 

 

100.5

 

 

 

116.3

 

Corporate and Other(a)

 

(21.4

)

 

 

(44.6

)

 

 

(93.7

)

 

 

(139.7

)

Other income (expense), net(b)

 

(0.9

)

 

 

(3.4

)

 

 

2.0

 

 

 

(16.7

)

Total Operating Profit

 

7.0

 

 

 

(10.4

)

 

 

8.8

 

 

 

(40.1

)

Interest income

 

2.2

 

 

 

0.7

 

 

 

5.4

 

 

 

1.6

 

Interest expense

 

(4.2

)

 

 

(8.1

)

 

 

(22.9

)

 

 

(23.5

)

Income before Income Taxes

$

5.0

 

 

$

(17.8

)

 

$

(8.7

)

 

$

(62.0

)

 

(a)

Corporate and Other for the three and nine months ended September 30, 2018 includes zero and $37.0 million, respectively, of costs formerly included in the S&IP business, $14.0 million and $45.5 million, respectively, of general expenses, $5.1 million and $11.9 million, respectively, of restructuring costs (see Note 3, “Restructuring Activities”), $0.8 million and $1.1 million, respectively of acquisition-related costs (see Note 4 “Business Acquisitions) and $1.5 million of costs and $1.8 million net benefit, respectively, from our TSA arrangements. Corporate and Other for the three and nine months ended September 30, 2017 includes $29.0 million and $86.3 million, respectively, of costs formerly included in the S&IP business, $13.6 million and $47.6 million, respectively, of general expenses, $2.0 million and $5.3 million, respectively, of acquisition-related expenses and zero and $0.5 million for post spin-related items.

(b)

Other expense includes amounts incurred related to litigation matters. See Note 11, “Commitments and Contingencies.”

Disaggregated Revenue

Our management evaluates the product category sales within our reportable business segment. Net sales by product category is presented in the following table (in millions):

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chronic care

$

93.6

 

 

$

88.8

 

 

$

287.8

 

 

$

266.1

 

Pain management

 

71.5

 

 

 

61.7

 

 

 

194.6

 

 

 

179.2

 

Total net sales

$

165.1

 

 

$

150.5

 

 

$

482.4

 

 

$

445.3

 

 

Due to the nature of our business, we receive purchase orders for products under supply agreements which are normally fulfilled within three to four weeks. Our performance obligations under purchase orders are satisfied and revenue is recognized at a point in time, which is upon shipment or upon delivery of our products to unaffiliated customers, depending on shipping terms. Accordingly, we normally do not have transactions that give rise to material unfulfilled performance obligations.